JACKSON TOWNSHIP, NJ—Two New Jersey lawmakers, Alex Sauickie and Robert Clifton, voted yes to help Democrats in Trenton approve a massive overhaul of the state’s gasoline tax system. The overhaul includes increased rate hikes and an annual EV tax.
The pair voted in line with Democrats and against the majority of Republicans in the New Jersey Senate and Assembly who voted against the bill.
Clifton and Sauickie represent a largely conservative and Republican region in Ocean, Monmouth, Burlington, and Middlesex Counties.
The New Jersey Assembly has passed Assembly Bill No. 4011, setting a precedent for transportation funding and environmental initiative for the next five years. The legislation modifies the “New Jersey Transportation Trust Fund Authority Act of 1984” to ensure continuous support for the State’s Annual Transportation Capital Program from 2025 through 2029. It proposes adjustments to the Petroleum Products Gross Receipts Tax and introduces a new annual fee for zero-emission vehicles, with all proceeds going to the Transportation Trust Fund (TTF).
The bill outlines a gradual increase in the highway fuel tax cap from $2.032 billion in 2025 to $2.366 billion by 2029. Should actual revenues deviate from these targets, tax rates will be recalibrated to meet the predefined amounts. This shift aims to accommodate the financial demands of upcoming fiscal years, ensuring that the TTF remains well-funded.
Moreover, starting July 1, 2024, zero-emission vehicles will incur an additional $250 registration fee, escalating by $10 annually until reaching $290 in 2028. This fee applies only to vehicles meeting the California Air Resources Board’s zero-emission standards. The move aims to ensure that all vehicle owners contribute fairly to the maintenance of state roadways.
The bill’s passage guarantees an appropriation of approximately $10.37 billion for state and local transportation projects from 2025 to 2029. This sum includes an estimated $2.3 billion in state aid for county and municipal transportation initiatives. Furthermore, it authorizes nearly $8.84 billion in bonding and provides about $1.5 billion in pay-as-you-go funding for these projects.
The legislation also includes provisions to support the New Jersey Department of Transportation and NJ TRANSIT. It enables an increase in the annual capital program amount by 3% annually in the latter three years, easing the financial burden on local governments and taxpayers. NJ TRANSIT is set to receive an additional $91.75 million over the program’s last three years, raising its annual capital funding to over $813 million by the fifth year.
By delaying the annual gas and diesel tax rate adjustment from October 1 to January 1, the bill aligns tax changes with the calendar year, simplifying financial planning for the state and its residents. This landmark legislation ensures a sustained investment in New Jersey’s transportation infrastructure, marking a significant stride towards modernizing the state’s roadways and supporting environmental sustainability through the encouragement of zero-emission vehicles.